Cybersecurity

Inside the SEC's Statement on Cybersecurity

I strongly urge everyone to read SEC Chair Jay Clayton‘s recent Statement on Cybersecurity. One part of the statement is receiving a lot of attention. Last month, the Commission learned that an incident previously detected in 2016 may have provided the basis for illicit gain through trading. While the Commission believes the intrusion (the exploitation of a software vulnerability in the test filing component of the EDGAR system) did not result in unauthorized access to personally identifiable information, jeopardize its operations, or result in systemic risk, it openly admits that it did result in access to nonpublic information of issuers.  The statement did not say whether any of the issuers’ nonpublic information that was exposed was material, and there’s no way it could possibly determine that. The Commission’s investigation of this matter is ongoing.